The Impact of Internal Control and Electronic Disclosure on the Electronic Auditing Risk in the Jordanian Industrial Public Shareholding Companies
Keywords:Internal Control, Electronic Disclosure, Electronic Auditing, Industrial Public Shareholding Companies, Companies, Jordan
Purpose: The aim of this study is to examine the possibility of the risk associated with electronic auditing by identifying the relationships between the various internal control aspects (control activities, control environment, monitoring, information and communications, and electronic disclosure)
Theoretical framework: The Jordanian Industrial Public Shareholding Companies as other sectors, apply standards for internal audit that set by experts and electronic auditing using a new electronic technique that may affected by IC and ED.
Design/methodology/approach: The descriptive statistics used to describe the electric questionnaire responses of the study sample using SPSS statistical analysis. The study population was made up of the finance department personnel and financial managers of the 45 public shareholding businesses, and 225 companies that were listed on the Amman Stock Exchange up until the end of December 2021.
Findings: The results show that in Jordanian public shareholding businesses, risk assessment with its aspects (internal control and electronic disclosure) had a statistically significant influence on reducing audit risk in their dimensions (control risk, inherent risk, and discovery risk). In addition, the study determined that electronic disclosure had a statistically significant impact on lowering audit risk in Jordanian public shareholding corporations.
Research, Practical & Social implications: The implications for Practice of the adoption of electronic systems will raise the risks to the confidentiality and reliability of accounting data. This is the purpose of electronic auditing, since it decreases the possibility of misrepresentation and manipulation of accounting data provided electronically. Further study can involve many countries in the region so as the conducted results can be widespread and globalized.
Originality/value: The study among the first highlighted the impact of internal control and electronic disclosure for the risk associated with the electronic auditing in the Jordanian Industrial Public Shareholding Companies.
Abu Alim, Areej, A, (2016). The Impact of Electronic Audit Risk on Audit Quality from the Point of View of Jordanian External Auditors, Unpublished Master's Thesis, College of Business and Finance Administration, Al al-Bayt University, Mafraq, Jordan.
Al-Arbeed, I, Kartali, H, (2016). The Impact of Electronic Accounting Disclosure on the Usefulness of Accounting Information: a Field Study on Companies Listed in the Arab stock Exchanges, Al-Baath University Journal, (38) 34, 366-387.
Al-Bishtawi S, l-Baqmi, M, (2015). The Impact of the Application of Expert Systems in Jordanian Commercial Banks on Electronic Auditing Procedures from the Point of View of External Certified Accountants: a Comparative Study in the Hashemite Kingdom of Jordan and the Kingdom of Saudi Arabia, The Jordanian Journal of Business Administration, (11)1, 15-117.
Al-Farrajah,A, (2020). The Role of Electronic Auditing in Achieving Competitive Advantages and Supporting the External Audit Strategy in Auditing Offices in Jordan, Unpublished Master's Thesis, College of Graduate Studies, Al-Isra University, Amman, Jordan.
Al-Hayali, A, (2011). The Impact of the Efficiency of the Internal Control System in Choosing the Auditor for the Evidence: Applied Research in the Electronic Industries Company, PhD Thesis, Higher Institute for Accounting and Financial Studies, University of Baghdad, Iraq.
Al-Saleem, Z, (2016). Elements of Electronic Disclosure and its Importance in Investment Decisions, Journal of the College of Administration and Economics, (12) 61, 231-256.
Al-Samurai, H, (2016). The Impact of the Internal Control System on the Quality of Financial Reports: an Analytical Study on the Jordanian Pharmaceutical Companies Listed on the Amman Stock Exchange, Unpublished Master's Thesis, College of Business, Middle East University, Amman, Jordan.
Al-Shatnawi, H, (2018). The Role of Electronic Accounting Disclosure in Improving the Quality of Financial Reports and Reducing the Information Asymmetry Gap in the Jordanian Business Environment, Refad Journal for Studies and Research, (5)3, 288-307.
Al-Thneibat, A, (2017). Auditing Accounts in the Light of International Standards: Theory and Application, (6th Edition), Dar Wael for Publishing and Distribution, Amman, Jordan.
Bakou, F, Ahmed,M, (2012). Activating Internal Control Systems to Reduce the Phenomenon of Financial and Administrative Corruption in Service Units: a Theoretical and Analytical Study, Journal of Administration and Economics, (92)35, 167-181.
Basu, M, (2013). The Role of Internal Audit in the Activation of Banking Credit Risk Management. Unpublished Master’s Thesis, Kassidy Merbah University, Ouargla, Algeria.
Benboualia, K., Berberib, M A. (2018). The Importance of Introducing Electronic Accounting Disclosure Using the XBRL Language in Activating the Algerian Stock Market, Journal of Accounting, Finance and Auditing Studies, 4(1), 40-58.
Bollen, L., Hassink, H. and, G. (2006). Measuring and Explaining the Quality of Internet Investor Relations Activities: A Multinational Empirical Analysis, International Journal of Accounting, (4)7, 122-131.
Dashash, A and Seddiqi, M, (2018). The Role of Electronic Disclosure in Enhancing the Quality of Financial Information, Journal of the Performance of Algerian Institutions, (1) 14, 18-33.
Dudin, H, (2018). Advanced Statistical Analysis of Data Using SPSS, 3rd edition, Amman, Jordan: Dar Al Masirah for Publishing and Distribution.
Enaya, G, (2014). Scientific Research, Methodology for the Preparation of Research and University Theses, 1st Edition, Amman, Jordan: Dar Al-Man haj for Publishing and Distribution.
Ezz El-Din, O. (2015). The Impact of the Effectiveness of the Internal Control System on the Performance of the Internal Auditor: a Field study on Private Jordanian Universities, Unpublished Master's Thesis, College of Business, Middle East University, Amman, Jordan.
Enquix,M & Gil, Ester, & Fernandez, J , (2019) . Relation Between Internet Financial Information Disclosure and Internal Control in Spanish Local Governments, Aslib Journal of Information Management, ISSN-2050-3806 , 10 May 2019.
Fan, J., Zhang, P., & Yen, D.C. (2015). Title: Internal Control Framework of a Compliant ERP System Internal Control Framework of a Compliant ERP System. Computer Science Studies, 6(8) , 66-78.
Gujarati D, Porter, D, and Gunasekar, S. (2017). Basic Econometrics (5thed). USA, New York: The Mc Graw- Hill Gunasekar.
Hair, J, F, Black, W. C, Babin, B. J, Anderson, R, E, and Tatham, R, L, (2018). Multivariate Data Analysis (8thed): Cengage Learning EMEA.
Kandelji, A, (2017). Scientific Research and the Use of Traditional and Electronic Information Sources, 7th Edition, Amman, Jordan: Dar Al Masirah for Publishing, Distribution and Printing.
Khansaa N, ,Alaa, A, (2022),The Extent Of The Application Of Internal Auditing Standards In Iraqi Commercial Banks, https://openaccessojs.com/JBReview/article/view/600
Linn, R. L, Gronlund, N, (2012). Measurement and Assessment in Teaching, (11th ed) Prentice Hall.
Marei, A (2015). Electronic Auditing and its Impact on the Quality of Auditing at Auditing Offices and Companies Operating in Jordan: a Field study, Unpublished Master's Thesis, College of Graduate Studies, Zarqa University, Zarqa, Jordan.
Mohsen, M, Rashid, A and Aziz, S, (2017). The Extent to Which the Banking Sector is Aware of the Importance of Accounting Disclosure Through the Electronic Publication of Financial Reports: An Exploratory Study on a Sample of Banks in Erbil Governorate, the Academic Journal of Nowruz University, (6)1, 135-152.
Olayan, R, and Ghoneim O, (2013). Theoretical and Applied Scientific Research Methods, 5th edition, Amman, Jordan: Dar Safaa for Publishing and Distribution.
Patrícia, N, Carvalho S, Romeu , N,, (2020) ,Electronic Preaching As An Efficient Tool In Public Management, https://openaccessojs.com/JBReview/article/view/184
Rashwan, A, (2018). The Impact of Electronic Disclosure of Financial Information on the Efficiency of the Palestinian Capital Market in the Light of International Financial Reporting Standards, Journal of Financial, Accounting and Administrative Studies, (1) 9, 696-720.
Sayed, T,. (2019). The Effectiveness of Accounting Information Systems in Reducing the Risk of Electronic Auditing: Applied Study on Irbid’s Electricity Company of Jordan, International Journal of Business and Management, 14(4),205-2015.
Sekaran, U., & Bougie, R, (2016). Research Methods for Business: A Skill Building Approach, (7thed), NY: John Wiley & Sons Inc, New York.
Sirhan, Shifa Sirhan, (2019). The Impact of Success Factors of Accounting Information Systems on the Quality of Electronic Audit, Unpublished Master's Thesis, College of Economics and Administrative Sciences, Al al-Bayt University, Mafraq, Jordan.
Tanina, F. (2017). The Impact of Internal Control on Performance: An Applied Study on the Banking Sector in the West Bank, Unpublished Master's Thesis, College of Graduate Studies, Hebron University, Hebron, Palestine.
Thabit, T, (2020). The Influence of Mobile Information Technologies in Enhancing the Electronic Audit. Available at SSRN: https://ssrn.com/abstract=3495738 or http://dx.doi.org/10.2139/ssrn.3495738.
Yassin, E, (2015). The Effectiveness of Administrative Control and its Relationship to Job Performance Among Principals of Basic Government Schools in the West Bank Governorate from the Point of View of Teachers, Gaza University Journal, 12 (7), 72-89.
Zhu, J., Guo, L. & Liu C. (2011), Measurement System of Flexible Electronic Checking Fixture on Robot. Precision Measurement Technology and Instruments, 2(54), 245-365.
How to Cite
Copyright (c) 2023 Abdalla Alassuli, Mo'taz Alzobi
This work is licensed under a Creative Commons Attribution-NoDerivatives 4.0 International License.
Authors who publish in this journal agree to the following terms: the author(s) authorize(s) the publication of the text in the journal;
The author(s) ensure(s) that the contribution is original and unpublished and that it is not in the process of evaluation by another journal;
The journal is not responsible for the views, ideas and concepts presented in articles, and these are the sole responsibility of the author(s);
The publishers reserve the right to make textual adjustments and adapt texts to meet with publication standards.
Authors retain copyright and grant the journal the right to first publication, with the work simultaneously licensed under the Creative Commons Atribuição NãoComercial 4.0 (http://creativecommons.org/licenses/by-nc/4.0/), which allows the work to be shared with recognized authorship and initial publication in this journal.
Authors are allowed to assume additional contracts separately, for non-exclusive distribution of the version of the work published in this journal (e.g. publish in institutional repository or as a book chapter), with recognition of authorship and initial publication in this journal.
Authors are allowed and are encouraged to publish and distribute their work online (e.g. in institutional repositories or on a personal web page) at any point before or during the editorial process, as this can generate positive effects, as well as increase the impact and citations of the published work (see the effect of Free Access) at http://opcit.eprints.org/oacitation-biblio.html